FMFBY: Crop Insurance Support for Farmers

Under FMFBY, farmers receive insurance protection against yield losses in standing crops caused by risks that cannot be prevented or controlled. The scheme provides coverage against  pests and diseases, as applicable under the notified scheme provisions.

The State Government plays an important role in deciding which crops and areas will be covered under the scheme. Each State Government notifies the eligible crops, areas and applicable insurance provisions for a particular season based on local agricultural conditions and scheme guidelines. Therefore, farmers should check the crop and area notified by their respective State Government before enrolling for crop insurance.

To avail themselves of crop insurance benefits, farmers should keep a few important documents ready. These include their Aadhaar Card for identification, land documents or proof of tenancy to establish cultivation rights, and bank account details for receiving eligible claim payments directly into their bank account.

For Kharif food grain and oilseed crops, including cereals, millets, pulses and oilseeds, farmers are required to pay a premium of 2% of the Sum Insured (SI) or the applicable actuarial rate, whichever is lower. This helps farmers obtain crop insurance coverage at an affordable premium.

For annual commercial and horticultural crops, farmers growing these crops during Kharif and Rabi seasons pay a premium of 5% of the Sum Insured (SI) or the applicable actuarial rate, whichever is lower. The premium amount is limited to the prescribed farmer share under the scheme.

The State Government is also responsible for notifying the applicable crops, areas and other relevant details within the prescribed timelines so that farmers, insurance companies and other stakeholders are aware of the coverage available for that season. Farmers should therefore refer to the official notification issued by their State Government to confirm whether their crop is covered.

The scheme also focuses on timely settlement of eligible claims. A penalty of 12% per annum is applicable in cases of delayed settlement of claims by insurance companies or delayed release of funds by State Governments, as per the applicable provisions.

Once the claim is approved and payable, the claim amount is transferred directly to the farmer's bank account. This direct transfer helps make the process more transparent, reduces unnecessary delays and ensures that farmers receive the financial support due to them.

In simple terms, FMFBY acts as a financial safety net for farmers when their insured crops suffer losses due to covered  pests and diseases. Farmers should check which crops have been notified for insurance by their State Government, ensure that their crop and land details are correctly recorded, and keep the required documents ready to make the insurance process smoother.